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German retail investors count on negative rates

Almost two thirds of German savers believe they could soon face negative interest rates on their bank accounts, according to a poll administered by Union Investment.

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PA Europe

Slightly over a third of the 500 survey respondents believe negative interest rates on bank savings accounts are likely or very likely, with another 28% seeing it as a ‘possibility’. Even though they are set to lose money if they stay put, most of these investors are not prepared to switch some of this money to equities.

Of all investors who see negative rates as a distinct possibility, less than 40% are prepared to shift some of this money equities. Still, just 19% of German retail investors are now considering current accounts as an attractive investment option.

So what are they considering to invest in then? Real estate and gold, is the answer. Three quarters of those polled consider the former as an attractive investment, while gold is popular with 57% of survey respondents.

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